-- C-Cube Delivers New Standard for German Satellite and Cable Multimedia Set-Top -- Boxes Business/Technology Editors LONDON--(BUSINESS WIRE)--May 18, 1999-- Philips, BetaResearch and C-Cube Collaborate to Bring Interactive Applications to German Consumers Reinforcing its position as the digital video pioneer, C-Cube Microsystems (Nasdaq: CUBE) today announced that its AViA@tv technology is enabling Germany's leading cable and satellite service providers to offer Web-over-TV applications to consumers. The next generation digital set-top boxes, deployed in Germany, the d-box(TM), which deliver digital video to standard television sets, are being built by Philips (NYSE: PHG) for cable and satellite installation according to the specification of BetaResearch, a subsidiary of the KirchGroup and a major European digital television technology provider. Other subsidiaries of the KirchGroup will also deploy the dbox(TM), including the German pay TV channel Premiere which has approximately 1.7 million subscribers. DF1, a company founded in 1996 by the KirchGroup, will also rely on the d-box(TM) to promote digital television on the German-language market by broadcasting and marketing thematic pay TV channels featuring movies, series, children's programs, sports, documentaries and music. Philips selected C-Cube's AViA@tv digital video system-on-silicon due to its powerful feature set and superior graphics capability that enables the display of web content on TV. With the AViA@tv technology, consumers can access advanced interactive services, entertainment and information on the d-box(TM) network with a simple click of the remote. Philips will use AViA@tv to build the next generation BetaResearch set-top, the dbox. About AViA@tv Set-Top Solutions C-Cube's AViA@tv is quickly becoming an important silicon platform in the digital set-top market. It has the complete set of graphics capabilities required by today's demanding television applications, enabling it to deliver interactive features such as Web-browsing over television. Powered by its high performance integrated CPU, AViA@tv multi-planar graphics enable the development of the industry's richest graphical user interfaces. It also contains an integrated Flicker Filter(TM) feature to dramatically improve picture quality of HTML web content over the television. Additionally, it features support for two-way in-band and out-of-band cable networking that allows subscribers to access high-speed data services such as Web browsing and e-Commerce via the set-top box. Interactive set-top applications such as these have been proven to offer strong revenue gains for service providers. "Two-way cable networking is critical for the successful deployment of today's interactive video services," said Jos Swillens, General Manager of Philips Digital Receivers. "With C-Cube's technology in the box, we are able to deploy Internet-on-TV applications at a price consumers can afford. Thus Philips, a leading consumer electronics company, is able to grow its leading position in the set-top market further." "Subscribers' expectations for television entertainment have shifted the set-top market into supplying a more feature-rich interactive, multimedia solution," said David Baillie, Vice President and General Manager of C-Cube's Consumer Network Products Business Unit. "We are pleased to be collaborating with Philips to bring a new level of entertainment value to consumers. With the AViA@tv platform as the enabling technology, these next generation multimedia set tops will provide the most innovative, interactive services available." About Philips Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of US$33.9 billion in 1998. It is a global leader in color television sets, lighting, electric shavers, color picture tubes for televisions and monitors and one-chip TV products. Its 233,700 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, medical systems, business electronics and IT services (Origin). Philips is quoted on the NYSE, London, Frankfurt, Amsterdam and other stock exchanges. About BetaResearch BetaResearch, the technology company of the KirchGroup, develops and markets new technologies for digital communications. The BetaResearch product portfolio includes the "betacrypt" Conditional Access and data security systems, smart card technology, the "betanova" system software and open application programming interface (API), interactive applications including internet access, subscriber management and playout scheduling systems for digital broadcasting centers. BetaResearch licenses its technology to Premiere, DF1, Deutsche Telekom AG, other service providers and decoder manufacturers. With plans to expand business to other countries, BetaResearch is quickly becoming a leading provider of digital video broadcasting (DVB) technologies. BetaResearch is based in Unterfoehring near Munich / Germany and can be reached on the internet at betaresearch.de BetaResearch is a subsidiary of the KirchGroup, the German media group, which is active internationally in film and television production, distribution and broadcasting. The KirchGroup is a major European supplier of films, series, classical music and children's programming for television. The KirchGroup's pay-TV endeavors include the first digital platform in the German-speaking markets, DF1, Premiere (also Germany) and Teleclub (Switzerland). It also has interests in Telecinco, Spain's commercial broadcaster, and in Mediaset, Italy's television company. About C-Cube Microsystems C-Cube Microsystems Inc. is the industry leader in the development and delivery of highly integrated digital video silicon and systems solutions. The C-Cube Semiconductor Division delivers highly integrated digital video silicon and systems solutions for the communications and consumer electronics markets, including digital set-top boxes, VCD, and DVD. DiviCom, a wholly owned subsidiary of C-Cube, is a leading provider of open solutions for digital television. DiviCom products include audio/video encoding, data broadcast solutions, network management systems, consulting and integration services. C-Cube is headquartered in Milpitas, California with offices in North America, Europe, and Asia. Its stock is traded on the Nasdaq under the symbol CUBE. C-Cube can be reached at +1.408.490.8000 or on the World Wide Web at c-cube.com. DiviCom is based in Milpitas, California and can be reached at +1.408.944.6700 or on the World Wide Web at divi.com. C-Cube and the C-Cube logo are registered trademarks of C-Cube Microsystems Inc. All other trademarks and registered trademarks are property of their respective companies. --30--ap/sf* CONTACT: C-Cube Melissa Malley Public Relations 408.490.8510 mmalley@c-cube.com or Steven Horwitz Investor Relations 408.490.8561 shorwitz@c-cube.com KEYWORD: CALIFORNIA INTERNATIONAL EUROPE INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS INTERACTIVE/MULTIMEDIA/INTERNET PRODUCT Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com
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